A Japanese EXPORTER has a 1,000,000 receivable due in one year.Listed Options Strike Puts CallsEuro62,500$1.25 = 1.00 $0.0085 per $0.02 per Yen12,500,000$1.00 = 100 $0.0085 per 100 $0.02 per 100(a) Detail the hedging strategy with options.(b) Estimate the cost today of an options strategy that will eliminate exchange rate risk.

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A U.S. company has issued floating-rate notes with a maturity of 10 years, aninterest rate of (6-month LIBOR+0.15%), and total face value of $10 million. The companynow believes that interest rates will rise and wishes to protect itself against this by enteringinto an interest rate swap. A dealer provides a quote on a 10-year swap whereby the companywill pay a fixed rate 4 percent and receive (6-month LIBOR0.10%). Interest is paidsemiannually. Assume the current LIBOR rate is 3%. Indicate how the company can use aswap to convert the debt to a fixed rate. Calculate the first net payment and indicate whichparty makes the payment. Also, what is the dealers first net payment (or profit)? Assume thatall payments are semiannual and made on the basis of 180/360

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I need help with these two questions. thank you.